Appointment Rules
- Governed by Banking Regulation Act.
- Requires RBI approval in cases.
- Controlled by Companies Act.
- Independent auditor selection.
- Periodic rotation required.
Scope of Audit
- Review of financial statements.
- Examination of compliance.
- Checking of asset quality.
- Verification of capital adequacy.
- Monitoring liquidity positions.
Regulatory Oversight
- RBI issues audit guidelines.
- ICAI sets auditing standards.
- SEBI monitors listed banks.
- Joint supervision in critical cases.
- Annual regulatory inspections.
Accountability Measures
- Liable for misstatements.
- Penalized for negligence.
- Subject to disciplinary action.
- Can be removed by regulators.
- Bound by strict ethics code.
Disclosure Obligations
- Submit reports to regulators.
- Highlight irregularities.
- Provide transparency to shareholders.
- Certify compliance with laws.
- Recommend corrective actions.
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